CVS, Aetna Merger Approved by Department of Justice

GoLocalProv Business Team

CVS, Aetna Merger Approved by Department of Justice

Larry Merlo, CEO of CVS
The Department of Justice has granted preliminary approval for CVS Health’s acquisition of Aetna.

According to the Department of Justice, the two companies must divest Aetna’s Individual Part D Prescription Drug plan before the merger goes any further.

“Today’s settlement resolves competition concerns posed by this transaction and preserves competition in the sale of Medicare Part D prescription drug plans for individuals. The divestitures required here allow for the creation of an integrated pharmacy and health benefits company that has the potential to generate benefits by improving the quality and lowering the costs of the healthcare services that American consumers can obtain,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division in the press release.

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"DOJ clearance is an important step toward bringing together the strengths and capabilities of our two companies to improve the consumer healthcare experience," said CVS Health President and Chief Executive Officer Larry J. Merlo. "We are pleased to have reached an agreement with the DOJ that maintains the strategic benefits and value creation potential of our combination with Aetna. We are now working to complete the remaining state reviews."

Merlo added, "CVS Health and Aetna have the opportunity to combine capabilities in technology, data and analytics to develop new ways to engage patients in their total health and wellness. Our focus will be at the local and community level, taking advantage of our thousands of locations and touchpoints throughout the country to intervene with consumers to help predict and prevent potential health problems before they occur. Together, we will help address the challenges our health care system is facing, and we'll be able to offer better care and convenience at a lower cost for patients and payors."CVS announced that it would by Aetna for $69 billion in cash and stock back in December.

As GoLocalProv reported in October of 2017, a combined CVS and Aetna company would be the second largest revenue company in the United States — at $240 billion — ahead of Apple ($215B) and Berkshire Hathaway ($223B). The only company in America doing more revenue would be Walmart ($485B).

The Deal

The merger will combine CVS’ pharmacies with Aetna’s insurance business.

They are planning to add more services to the MinuteClinics in hopes of getting more people to come in and stay away from emergency rooms.

As GoLocalProv wrote in 2017, the biggest winner in the proposed acquisition of Aetna by CVS may be Rhode Island.  The deal is one of the biggest business deals in the United States will transform the company and its roll in healthcare in America.

GoLocal added, “It is likely that the combined company will trim jobs — but pre-acquisition, CVS employs 243,000 and Aetna employs 49,500”


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